May Update

How is the property market?

As a buying advisor, the question I get asked the most is “how is the property market”? At the moment it’s a difficult question, because there isn’t one clear answer. The London market is very fragmented – there are so many markets within the capital, each one performing differently. Navigating these markets can be challenging as each have their own set of challenges and opportunities, therefore getting the right advise is key.  

Best in class properties that are priced correctly are very hard to come by, so they sell quickly when they do come on.  These properties aren’t seeing the same discount levels as other properties are receiving as they really are a rare commodity in today’s market. Working with a buying advisor ensures getting access to these properties, especially as many of them tend to be off-market. 

There is further room for discounts for properties that aren’t considered best in class. According to the Financial Times, “the price of property in prime areas of the capital dropped to £1,261 per square foot last month, down from £1,326 a year earlier — the lowest level since mid-2021, according to data provider LonRes, as values continued the decline that began in late 2022 after a buoyant 18 months”. As the quote suggests, the market has been correcting itself after a surge of activity post lockdown. 

One segment of the market that is experiencing a comeback are well located flats. According to Hamptons (the estate agency), prices of flats in certain areas are 26% higher than they were prior to the pandemic. Flats in Belgravia and South Kensington are both doing very well as they had taken a dip during the pandemic due to the lack of foreign buyers. Average prices in Belgravia are up by over £280,000 and in South Kensington average prices are up by £275,000. 

The super prime market continues to perform extremely well – in fact it is back to pre-Brexit levels. There were more than 160 properties that sold for £10 million or more in the last financial year. This is the highest number since 2016, the year that Brexit spooked the market. The global head of sales at Knight Frank was quoted in the Guardianstating, “after everything that has happened in recent years, London is still highly regarded by global buyers”. 

This is a very important point – yes, it has been a turbulent few years for the country and there is the looming threat of a labour government. Despite the instability, I am still a firm believer in Prime Central London property in the long run. PCL property has historically been a haven for wealthy foreigners living in more unstable markets, I believe this will continue. It’s not a city to invest in if you are looking for quick profits due to the high stamp duty tax, however if you are looking for a safe asset with the view of a long-term investment, I believe PCL is still a great place for that. 

If you are interested in purchasing a property in London, please send an email to iyad@iyadgrahne.com for a free consultation.